ISTANBUL: Turkey’s lira dipped 0.4% against the dollar on Tuesday as concerns over rampant inflation were stoked by President Tayyip Erdogan’s pledge to continue cutting interest rates.

In a Monday evening speech, Erdogan sought to downplay the surge in annual consumer prices, to 73% last month, as just one of several problems for the economy that should begin to ease early next year.

The lira slid as far as 16.669 to the dollar from a close of 16.58 on Monday. It has weakened 21% this year, on top of a 44% slide in 2021, when it was hit by a series of unorthodox interest rate cuts made despite the high inflation.

Speaking after a cabinet meeting, Erdogan said Turkey will not raise interest rates but rather continue cutting them in the face of high living costs.

Turkish lira slips again; Nebati says rates to stay put

He also redoubled his commitment to boosting production, exports and employment with the unorthodox low-rates policy and promised a current account surplus that will eventually steady the currency and cool inflation.

Separately, the central bank said it sold $1.82 billion in foreign currencies last month to state enterprises, primarily energy-importer Botas.